Ministry of Finance
SBI comes with Common COVID Emergency Line of Credit along with SBI YONO Digital Platform and E-Mudra Loan to Help Small Entrepreneurs
Revival of MSME Sector Most Important for Labour Absorption Opines UBI
NABARD Extends Special Liquidity Support of Rs 30,000 crore to Enhance Liquidity of Cooperative Banks
Kolkata, 18 July, 2020
Under the guidance of Reserve Bank of India , as well as the Deptt. of Financial Services Government of India, STATE BANK OF INDIA  and other Public Sector Undertakings s have come up with various initiatives to meet their operational liabilities, cash crunch and to start or maintain their businesses in the COVID-19 pandemic situation. SBI has established a nodal officer in each administrative office to ensure speedy implementation of such initiatives said SBI General Manager Shri MD Saad Imteyaz Hussaini on Friday evening while interacting in a webinar organised by Press Information Bureau, Kolkata, on the ‘Banking Efforts to help in attaining Atma Nirbhar Bharat in the Covid Situation’. He added, in the first week of April itself, SBI and other PSBs have come up with a new product, the Common COVID Emergency Line of Credit where 10% of their fund based working capital limit was provided to MSME units and other business enterprises to tide over the liquidity crisis. This product was availed by many MSME and business enterprises. This 10% working capital demand loan is having tenure of 24 months along with a moratorium period of six months. The Interest rate is also 1% above MCLR, roughly around 8%.
According to Shri Hussaini, in the month of May, the Government of India has come up with a big bonanza for the MSME sector. The Government has launched an emergency credit limit of 3 lac crore to the MSME sector. Any MSME unit having total outstanding within 25 crore as on February 29, 2020 and not having any irregularity of NPA / SMA 2 can avail 20% of their outstanding as on February 29, 2020 as a working capital term loan. The term loan is pre-approved. The loan has a tenure of 48 months and a moratorium of 12 months. Interest must be paid monthly as and when applied. The scheme is open either up to October 31, 2020 or whenever the 3 lac crore fund gets sanctioned by the member-lending institutions. He also mentioned SBI and other PSBs offering E-Mudra loan as in the new normal banking transactions have been shifted more to the digital platform. Shri Saad spoke on the YONO digital platform where Customers can open accounts online through YONO without visiting the Branch. SBI has launched a new concept called Pre-Approved Business Loan. Business enterprises can avail loan through digital platform without visiting branches, he informed.
Speaking on the occasion, Shri Ashok Pradhan, the former Managing Director of United Bank of India  opined that revival of MSME sector is most important in the current scenario for labour absorption. He also suggested a longer repayment period instead of restricting to March 31, 2021 to ease the stress of MSME units. Shri Pradhan also put thrust on providing necessary impetus to manufacture to produce at the competitive rate, making India more resilient and bringing a change in our approach and also spoke in favour of upgrading physical infrastructure.
The Chief General Manager of NABARD, Kolkata pointed out how NABARD has extended special liquidity support of Rs 30, 000 crore to enhance the liquidity of cooperative banks, RRBs and microfinance institutions to benefit nearly 3 crore farmers, besides extending special liquidity support of Rs 1,070 crore to the rural financial institutions for providing the credit to farmers and self help groups ahead of the Kharif showing. He also mentioned the special drive initiated by NABARD to provide concessional credit of Rs 2 lakh crore to 25 million farmers under the Kissan Credit Card.
Shri Debashis Basu, who represented the Urban Cooperative Banks (NEF Railway Employees Cooperative Bank Ltd and Shri Apurba Sen from the Eastern Railway Employees Cooperative Bank Ltd also spoke of their eagerness to help the small entrepreneurs within their limited scope.
Former Fellow, Agricultural Economics Research Centre, Delhi and Industrial Economist, Delhi School of Economics & Director General of Bhawanipore Education Society College, Professor Suman K Mukerjee said, we have to be aware of competition, consumer satisfaction, cyber security, increase of digital footprints, robotics process automation and digital ledger technology with block chain to enhance tamper-proof information and for financial inclusion, we need to develop digitalise rural banking. His views were supported by the former Senior Economist of RBI and Chief Economist & Head of Research, Bandhan Bank, Shri Siddhartha Sanyal.
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